China raises key parameter to facilitate cross-border financing

China on Monday raised a key parameter in its macro-prudential management to expand cross-border funding sources for companies and financial institutions, according to an official statement.

The macro-prudential adjustment parameter, a multiplier that decides the upper limit of outstanding cross-border financing available to an institution, has been revised from 1.5 to 1.75, according to the statement jointly issued by the People’s Bank of China and the State Administration of Foreign Exchange.

The upward revision aims to further improve the macro-prudential management of cross-border financing and guide enterprises and financial institutions to optimize their asset-liability structure, the statement added. 

Reference Link:- https://english.news.cn/20250113/bd830912449245f6a7671c3f2c1fc5a1/c.html

Prof. Engr. Zamir Ahmed Awan Founder & Chair, Global Silk Route Research Alliance

Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…

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